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An internal audit is done by the company itself. An external audit is done by auditors not under the influence of the company being audited.
Main purpose of internal audit is to establish internal control system as well as procedures which ensures that all departments works as per policies and procedures established by management of business as well as to help external auditors in conducting external audit.
auditor check reliability of financial data of the organization, and he give assurance about financial data of an organization.
This are in two groups, external users and internal users. External come from outside the business while internal are from inside the business. Examples of external are insurers, suppliers, customers, government tax auditors, etc while internal accounting users are within the business, thus shareholders, owners of the business
Internal & External auditors has difference in scope of their work and that's why different independence levels are expected from both of them as external auditors are the auditors who has to provide their independent opinion regarding the financial statements of any company, they are required to display independence from the management of company while giving opinion about fair activities. On the other hand internal auditors are the auditors who are appointed by the top management of the company to prepare and implement the risk assessment measures and to keep an independent eye on the overall operations of company that's why they are independent from operations of company and directly reportable to top management of company like shareholders auditor board etc so in this sense they are also somewhat independent from company as well.
external auditors focus primarily on controls that affect financial reporting. External auditors have a responsibility to report internal control weaknesses (as well as reportable conditions about internal control)
The internal audit of PwC is carried out by auditors of PwC itself, while an external audit will have to be carried out by external auditors. But external audits are only valid for public listed companies.
An internal audit is done by the company itself. An external audit is done by auditors not under the influence of the company being audited.
I believe the external auditors are Ernst & Young. Keep in mind, Enterprise also has an internal audit department that does a fantastic job.
The Institute of Internal Auditors provides a certification program for candidates who seek to be certified internal auditors (CIA).
Institute of Internal Auditors was created in 1941.
Internal auditors identify control problems and develop solutions for improving and strengthening internal controls. Internal auditors are concerned with the entire range of an organization's internal controls
Quality control of AISs involves many activities, including the services of both external auditors (public accountants) and internal auditors.
How make is performance appraisal of Internal Auditors
CIA stands for Certified Internal Auditor while CPA stannds for Certified Publlic Accountant. CIAs tend to work as internal auditors (surprise) while CPAs tend to work as accountants and external auditors.
External auditors are certified public Accountants (CPAs) licensed by their states to provide auditing services.
Main purpose of internal audit is to establish internal control system as well as procedures which ensures that all departments works as per policies and procedures established by management of business as well as to help external auditors in conducting external audit.